By Nvidia’s stock is on the rise as it approaches the significant $2 trillion valuation milestone.
Competition for Advanced Memory Semiconductors
The success of the chip maker has sparked intense competition among suppliers of advanced memory semiconductors. U.S. company Micron Technology faces off against South Korean rivals SK Hynix and Samsung Electronics.
Continued Growth in Nvidia Shares
In premarket trading, Nvidia shares climbed by 0.2% to reach $792.55. The company’s graphics-processing units for AI systems continue to drive its stock price higher, with Monday’s closing value at $790.92, putting the overall valuation close to $1.97 trillion.
Reshaping Industries with GPUs
The demand for Nvidia’s GPUs is not only boosting its own stock but also influencing related industries. Micron saw a 2.6% increase in premarket trading following the announcement of volume production for its High Bandwidth Memory 3E chips, set to be used in Nvidia H200 GPUs. On the other hand, SK Hynix experienced a 4.9% drop in local trading as competition heats up.
Advancements in Memory Chips
Samsung recently unveiled the HBM3E 12H, boasting the highest capacity high-bandwidth memory chip ever developed. Samsung anticipates mass production to kick off in the first half of this year, offering a significant speed boost of up to 34% for AI applications.
Positive Movement in Chip Stocks
In addition to Nvidia’s success, other chip stocks are also performing well on Tuesday. Advanced Micro Devices saw a 0.5% increase in premarket trading, while Intel was up by 0.6%.
Impressive Yearly Performance
Nvidia shares have surged by 60% year-to-date, outperforming both the S&P 500 and the Nasdaq Composite Index.
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